How to find your minimum viable income?

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Finding your minimum viable income (MVI) involves a focused effort on determining the least amount of money needed to sustain your essential lifestyle while pursuing your goals. Here are the key steps as discussed by Brad Barrett and Corbett Barr:

  1. Identify Essential Expenses: Start by knowing how much your life actually costs. This involves diving into your budget and identifying core expenses that cannot be cut without significantly affecting your quality of life 1.

  2. Cut the Fat: Consider cutting back on non-essential expenses. This might involve thinking outside the box and paring back more than you initially thought possible. Assess what's genuinely necessary for your satisfaction and survival 1.

  3. Living Lean: While it’s important to maintain a comfortable lifestyle, understanding the necessity to live lean if required helps maintain flexibility. For example, subletting your place during a sabbatical can reduce living costs significantly 1.

  4. Apply to Income: Once you have a clear sense of the minimum expenses, align your business or job to meet these costs. This might mean exploring alternative income streams or scaling back ventures until they cover at least this base amount 2.

  5. Minimalist Approach: Consider possessing only what you need. For example, having just essential items like a laptop and a few personal belongings can be surprisingly sustainable when done correctly. Evaluating the minimal viable possessions for your happiness and job performance can be enlightening 3.

    Building a Lifestyle Business

    Corbett shares his experience of building a lifestyle business by diving into his budget and finding his minimum viable income. He emphasizes the importance of knowing how much your life actually costs and avoiding the runaway hedonic treadmill that many entrepreneurs fall trapped to.

    ChooseFI

    254 Creating a lifestyle not a Job | Corbett Barr
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Using this approach helps ensure you’re financially prepared to cover essential needs even when exploring entrepreneurial ventures or adjusting to new financial realities.

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